Indonesia's Road Safety Concerns: 3% of GDP Lost to Traffic Accidents
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PublishedDec 31
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Indonesia's Road Safety Concerns: 3% of GDP Lost to Traffic Accidents

AnalisaHub Editorial·December 31, 2025
Executive Summary
01

Executive Summary

Key insights and market outlook

Traffic accidents in Indonesia result in significant economic losses, with 3% of the country's GDP affected annually. The Ministry of Transportation is working to address this issue by developing a National Road Safety Action Plan, aiming to reduce the number of fatal accidents. 80% of fatal accidents involve motorcycles, and many victims lack driving licenses.

Full Analysis
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Deep Dive Analysis

Road Safety in Indonesia: A Growing Concern

Economic Impact of Traffic Accidents

Traffic accidents in Indonesia have a significant impact on the country's economy, with 3% of the GDP lost annually due to these incidents 1

. This is equivalent to the country's annual health service budget. The Ministry of Transportation has acknowledged this issue and is working to address it.

National Road Safety Action Plan

To tackle this problem, the Ministry of Transportation is developing a National Road Safety Action Plan 1

. This plan aims to reduce the number of fatal accidents on Indonesian roads. The plan is currently in the finalization stage and will be implemented through a Ministerial Regulation.

Motorcycle Accidents: A Major Contributor

80% of fatal accidents in Indonesia involve motorcycles 1

. Furthermore, it has been found that two-thirds of the victims did not possess a driving license. This highlights the need for stricter traffic law enforcement and improved road safety education.

Conclusion

Road safety is a critical issue in Indonesia, with significant economic and human costs. The government's efforts to develop a National Road Safety Action Plan are a step in the right direction. However, more needs to be done to address the root causes of traffic accidents and improve road safety in the country.

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Story Info

Published
2 weeks ago
Read Time
7 min
Sources
1 verified

Topics Covered

Road SafetyTraffic AccidentsEconomic Impact

Key Events

1

Traffic Accidents Result in 3% GDP Loss

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National Road Safety Action Plan Development

Timeline from 1 verified sources